Compal Electronics Inc (
Compal will buy 26.6 million shares at NT$37 per share for a 69 percent stake in Arcadyan Technology Corp (
The deal was approved by the two companies' boards of directors yesterday.
"Compal will be able to create a complete wireless communications business by integrating resources with Arcadyan," the statement said.
The new business will move into the areas of digital multimedia home applications and dual-mode phones by utilizing Arcadyan's Internet protocol technology, Compal said.
It is now commonplace for laptops to have built-in wireless communications features, resulting in increased collaboration between notebook computer vendors and wireless technology companies, according to the statement.
The partnership would ensure ample wireless module supplies for laptop computer makers, while at the same time helping the firm to enlarge its client base and introduce new products, Compal said.
Compal will reduce its holding in Arcadyan to 60 percent after distributing shares to employees, with the remaining shares to be held by Accton. Arcadyan will probably hold an initial public offering within two years, the companies said.
Ray Chen (
Although the company projected a rosy outlook for its notebook shipments in the second half of the year, its gross margin in the second quarter dipped below 5 percent for the first time to 4.7 percent, compared with 6.2 percent a year ago.
Chen said on April 26 that Compal would leverage mergers and acquisitions to move into new areas such as wireless communications, digital home entertainment, automotive electronics and portable media devices.
"Our product diversification is still in its infancy ... without major mergers, this segment will probably contribute a single-digit percentage to our revenues this year," he said at the time.
Currently, notebook computers account for 90 percent of Compal's sales, with the remainder contributed by non-core business such as liquid-crystal-display televisions and monitors, wireless products and portable media players.
The firm said earlier this month it expected its non-notebook segments to account for 20 percent of total sales by 2008.
Compal reported profit of NT$8.42 billion on sales of NT$266 billion last year, while Accton Technology posted a loss of NT$302 million last year on sales of NT$18.3 billion.
Shares of Compal closed down 0.2 percent to close at NT$27.95 yesterday on the Taiwan Stock Exchange, while shares of Accton were up 1.7 percent to NT$18.2.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS